DERIVATIVE SECURITIES
FIN5DER
2016
Credit points: 15
Subject outline
The focus in this subject is on the pricing and valuation of derivative securities, and their use in risk management. Forward and swap contracts, together with futures and, options are the main securities considered. The role of derivative securities in the management of equity, bond and interest rate risk is also examined in depth.
School: La Trobe Business School
Credit points: 15
Subject Co-ordinator: Lily Nguyen
Available to Study Abroad Students: No
Subject year level: Year Level 5 - Masters
Exchange Students: No
Subject particulars
Subject rules
Prerequisites: N/A
Co-requisites: N/A
Incompatible subjects: N/A
Equivalent subjects: N/A
Special conditions: N/A
Learning resources
Readings
| Resource Type | Title | Resource Requirement | Author and Year | Publisher |
|---|---|---|---|---|
| Readings | Options, futures and other derivatives | Prescribed | Hull. J | 8TH EDN. PEAR COLLEGE DIV |
| Readings | Analysis of derivatives for the CFA program. | Recommended | Chance, D.M. | AIMR, 2003. |
Graduate capabilities & intended learning outcomes
01. To develop an understanding of characteristics of derivative securities and derivative markets
- Activities:
- Lecture, tutorial questions, quize, mid-term test, and final exam
- Related graduate capabilities and elements:
- Speaking(Speaking)
- Critical Thinking(Critical Thinking)
- Inquiry/ Research(Inquiry/ Research)
02. To develop an understanding of financial theories and analytical skills used to price and value derivative securities
- Activities:
- Lecture, tutorial questions, quiz, mid-term test, and final exam
- Related graduate capabilities and elements:
- Speaking(Speaking)
- Critical Thinking(Critical Thinking)
04. To develop analytical and practical skills in trading derivative securities and using derivative securities to manage the risk exposure of an asset or a portfolio
- Activities:
- Lecture, tutorial questions, quiz, mid-term test and final exam
- Related graduate capabilities and elements:
- Speaking(Speaking)
- Inquiry/ Research(Inquiry/ Research)
- Critical Thinking(Critical Thinking)
Melbourne, 2016, Semester 1, Day
Overview
Online enrolment: Yes
Maximum enrolment size: N/A
Enrolment information:
Subject Instance Co-ordinator: Lily Nguyen
Class requirements
LectureWeek: 10 - 22
One 2.0 hours lecture other recurrence on weekdays during the day from week 10 to week 22 and delivered via face-to-face.
TutorialWeek: 10 - 22
One 1.0 hours tutorial other recurrence on weekdays during the day from week 10 to week 22 and delivered via face-to-face.
Assessments
| Assessment element | Comments | % | ILO* |
|---|---|---|---|
| one 45 minute quiz | 10 | 01, 02 | |
| one 90 minute mid-semester examination | 30 | 01, 02, 04 | |
| one final 3-hour examination | 60 | 01, 02, 04 |
Melbourne, 2016, Semester 2, Day
Overview
Online enrolment: Yes
Maximum enrolment size: N/A
Enrolment information:
Subject Instance Co-ordinator: Lily Nguyen
Class requirements
LectureWeek: 31 - 43
One 2.0 hours lecture other recurrence on weekdays during the day from week 31 to week 43 and delivered via face-to-face.
TutorialWeek: 31 - 43
One 1.0 hours tutorial other recurrence on weekdays during the day from week 31 to week 43 and delivered via face-to-face.
Assessments
| Assessment element | Comments | % | ILO* |
|---|---|---|---|
| one 45 minute quiz | 10 | 01, 02 | |
| one 90 minute mid-semester examination | 30 | 01, 02, 04 | |
| one final 3-hour examination | 60 | 01, 02, 04 |